Shanghai Junshi Biosciences Co., Ltd. (referred to as "Junshi Biosciences") recently submitted its prospectus to the Hong Kong Stock Exchange. The company, a biotech firm focused on innovative cell therapies for solid tumors, highlights its core product GC101 as the world’s first tumor-infiltrating lymphocyte (TIL) therapy that eliminates the need for intensive lymphodepletion chemotherapy and IL-2 administration. GC101 is positioned to potentially become China’s first approved TIL therapy.

TIL therapy involves isolating, activating, and expanding TIL cells from tumor tissue before reinfusing them into patients. According to the prospectus, TIL therapy boasts the highest clinical evidence level among T-cell therapies for solid tumors, demonstrating efficacy surpassing PD-(L)1 antibodies.

However, behind this promising technology lie uncertainties: key patents remain under review, the company has reported cumulative losses exceeding RMB 350 million over two and a half years, and its cash flow remains negative. With short-term debt surging and cash reserves dwindling to RMB 63.63 million as of June 30, 2025, sustaining long-term operations appears challenging. Despite a 22-fold valuation increase to RMB 2.137 billion in five years, multiple institutional investors demanded share repurchases pre-IPO, while one major shareholder exited entirely—signaling potential concerns over the company’s timeline and prospects.

**RMB 350 Million Losses in 2.5 Years; Core Product Patents Pending Approval** Financially, Junshi Biosciences lacks revenue-generating products, resulting in persistent losses. From 2023 to H1 2025, cumulative other income reached approximately RMB 17 million, while net losses totaled RMB 94 million, RMB 164 million, and RMB 98 million, respectively—exceeding RMB 350 million overall, with widening deficits.

Negative cash flow persists, with operating activities consuming RMB 55.5 million, RMB 98.3 million, and RMB 50.1 million during the same periods. At the current burn rate (over RMB 100 million annually in R&D and operating losses), the remaining RMB 63.63 million cash reserve may prove insufficient.

Meanwhile, debt structure has deteriorated sharply: short-term borrowings surged 488.84% by June 2025, while long-term borrowings rose 662.7%, collectively increasing their share of total assets by 12.12 and 5.98 percentage points, respectively. Net debt ballooned from RMB 137.8 million at end-2023 to RMB 427.4 million by mid-2025.

**Pipeline Reliance on GC101; Clinical Data Fails to Impress** Junshi Biosciences has five pipeline candidates, with GC101—targeting melanoma—in pivotal Phase II trials. A Biologics License Application (BLA) is expected in 2026, while other programs remain in early-stage development, underscoring the company’s heavy reliance on a single asset.

GC101’s clinical data appears lackluster: objective response rates (ORR) were 30% in advanced melanoma (median PFS: 5.5 months) and 41.7% in non-small cell lung cancer (NSCLC) patients who failed multiple therapies. While showing potential for refractory cases, these figures pale against competitors like Innovent’s PD-1/IL-2 bispecific IBI363 (32% ORR in melanoma) and Sino Biopharm’s PD-L1/CD137 bispecific FS222 (47.4% ORR). Additionally, TIL therapy’s personalized nature—complex manufacturing, long cycles, and high costs—may hinder commercial scalability.

Junshi emphasizes platform advantages (e.g., no lymphodepletion/IL-2), but core patents—including GC101—remain under review globally, creating uncertainty over approval scope and timing.

**Valuation Soars 22-Fold in 5 Years; Pre-IPO Shareholder Exodus** Since its 2020 Pre-A round (post-money valuation: RMB 93 million), Junshi’s valuation skyrocketed to RMB 2.137 billion by November 2025’s Series C—a 22-fold jump. Series B+ and C rounds in 2025 alone boosted valuations from RMB 1.455 billion to RMB 2.137 billion.

This valuation surge hinges on optimism around TIL therapy’s potential, despite Junshi’s unprofitable status and unproven commercialization. Tightening secondary-market liquidity and investor focus on near-term performance heighten post-listing valuation risks.

Notably, in August 2024, early investors including Texas Liangyi Mifang and Yuanhe Origin demanded share repurchases. Junshi bought back stakes worth RMB 40.09 million, RMB 20 million, RMB 10 million, and RMB 10 million, respectively—equivalent to 3.73%, 2.10%, 1.05%, and 1.05% of registered capital. Such repurchases are rare for pre-IPO biotechs, often reflecting investor impatience or waning confidence.

Further, in November 2025—just before the IPO—shareholder Kaitai Kanghua sold its entire 1.1187 million shares to four individuals for RMB 160 million, exiting completely. This abrupt departure at a critical juncture fuels speculation about motives and valuation doubts.